Government may have to borrow to fund mortgage lenders

Name: Government may have to borrow to fund mortgage lenders
Uploaded: 2008-04-21T08:07:51.000Z
Duration: PTNaNMNaNS
Channel: Financial Times
Description: Fundamentals for UK housing still 'better' than those of US

The government may have to borrow to fund mortgage lenders directly, the Ernst & Young ITEM club warns in its spring forecast. Peter Spencer, Ernst & Young's chief economic adviser, says we could come close to recession due to the credit crisis, but recession may be avoided if the Bank of England continues to cut interest rates very gradually.